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Sep 30, 2021

IPG Photonics Q3 2021 Earnings Report

IPG Photonics experienced revenue growth driven by improved demand in Europe and the U.S., along with growth in emerging products and applications.

Key Takeaways

IPG Photonics reported strong Q3 2021 results with revenue of $379 million and earnings per diluted share of $1.40. The company saw increased demand in welding applications across most geographies and higher revenue in cutting in North America and Europe, as well as emerging products and applications.

Third quarter revenue increased 19% year over year to $379 million.

Earnings per diluted share (EPS) increased 112% year over year to $1.40.

Sales increased 50% in Europe and 55% in North America, while decreasing 7% in China.

Book-to-bill was slightly greater than one, indicating strong demand from emerging products and applications.

Total Revenue
$379M
Previous year: $318M
+19.1%
EPS
$1.4
Previous year: $1.29
+8.5%
Gross Margin
49%
Previous year: 48%
+2.1%
Operating Margin
26.9%
Previous year: 13%
+106.9%
Cash from Operations
$102M
Previous year: $70M
+45.7%
Gross Profit
$186M
Previous year: $153M
+21.7%
Cash and Equivalents
$795M
Previous year: $764M
+4.1%
Free Cash Flow
$62.5M
Previous year: $45.3M
+38.0%
Total Assets
$3.14B
Previous year: $2.79B
+12.5%

IPG Photonics

IPG Photonics

IPG Photonics Revenue by Segment

Forward Guidance

For the fourth quarter of 2021, IPG expects revenue of $330 to $360 million and earnings per diluted share in the range of $1.00 to $1.30.

Positive Outlook

  • Strong demand from emerging products and applications.
  • Benefit from macro trends such as investments into EV, clean energy and automation.
  • Growth prospects in EV applications.
  • Growth prospects in medical applications.
  • Growth prospects in handheld laser applications.

Challenges Ahead

  • Ongoing weakness in cutting applications in China.
  • Government and Company measures implemented to address the COVID-19 pandemic.
  • Supply chain constraints.
  • Product demand.
  • Order cancellations and delays.

Revenue & Expenses

Visualization of income flow from segment revenue to net income